Among the Sensex's top performers was Larsen and Toubro, which climbed 2.77% following news of significant new orders valued between Rs 2,500 crore to Rs 5,000 crore. UltraTech Cement also had a noteworthy day, rising 1.42% after announcing its acquisition of a 32.72% stake in India Cements for Rs 3,954 crore. Conversely, India Cements saw a decline of 0.65%.

The US Federal Reserve is set to announce its interest rate decision on July 31, a crucial event as markets anticipate a potential rate cut later this year. "Additionally, other macroeconomic data from the US and China will be closely monitored. On the domestic front, Q1 earnings will remain a key trigger, with many large companies scheduled to report their results," Meena added. Among the companies set to announce their quarterly results this week are GAIL, Adani Power, Bank of Baroda, BHEL, Coal India, M&M, Maruti, Tata Steel, Adani Enterprises, and Tata Motors.

In a statement on Thursday, the FAA declared that their investigation into the anomaly found no public safety issues, allowing the Falcon 9 to resume its flight operations even as the overall investigation continues. This green light signifies a major step forward for SpaceX, as the company eagerly prepares for its next launch as soon as Saturday, July 27.

The latest policy review by the US Federal Reserve indicated a belief among officials that the key interest rate had likely peaked. However, they suggested a gradual easing of the monetary policy stance later in the year if economic conditions align with their projections.

"The uncertainty regarding the Fed decision is over with the Fed keeping the rates unchanged and refraining from a hawkish message. The Fed chief's statement that "inflation has eased substantially while the labour market has remained strong" conveys conviction about the soft landing of the US economy and the possibility of probably three rate cuts this year.

Leading the downturn in the Sensex were prominent stocks like Tata Consultancy Services, Nestle, Bajaj Finserv, Wipro, Maruti Suzuki India, Reliance Industries, Larsen & Toubro, and NTPC. However, Tata Steel, Bajaj Finance, JSW Steel, and Bharti Airtel showed signs of improvement.